Market Newsdesk

July 29, 2021 6:00 am

LKQ Corporation Announces $1 Billion Increase in Stock Repurchase Program; total authorized now $2 Billion through October 2024

CHICAGO, July 29, 2021 (GLOBE NEWSWIRE) — LKQ Corporation (Nasdaq:LKQ) today announced that its Board of Directors has authorized a $1 billion increase and a two year extension to its stock repurchase program, raising the aggregate authorization under the program to $2 billion and authorizing repurchases through October 25, 2024. Since initiating the stock repurchase plan in October 2018, 25.0 million shares have been repurchased for a total consideration of $830 million through June 30, 2021.

Varun Laroyia, Executive Vice President and Chief Financial Officer of LKQ Corporation, stated: “The expanded stock repurchase program reflects our continued confidence in the Company’s future performance, long-term cash flow generation and the success of the program. The strength of our business, balance sheet, capacity for strategic investments, and disciplined approach to capital allocation positions us to deliver on our commitment of driving stockholder value creation.”

Under the repurchase program, the Company is authorized to repurchase shares in the open market as well as in privately negotiated transactions. The timing and the amount of any repurchases of common stock will be determined by LKQ management based on its evaluation of market conditions and other factors. The repurchase program will be effected in compliance with SEC Rule 10b-18 and other applicable legal requirements. The repurchase program does not obligate the Company to acquire any specific number of shares and may be suspended or discontinued at any time. Stock purchased as part of this program will be held as treasury stock.

About LKQ Corporation

LKQ Corporation (www.lkqcorp.com) is a leading provider of alternative and specialty parts to repair and accessorize automobiles and other vehicles. LKQ has operations in North America, Europe and Taiwan. LKQ offers its customers a broad range of OEM recycled and aftermarket parts, replacement systems, components, equipment, and services to repair and accessorize automobiles, trucks, and recreational and performance vehicles.

Forward Looking Statements

Statements and information in this press release that are not historical are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and are made pursuant to the “safe harbor” provisions of such Act.

Forward-looking statements include, but are not limited to, statements regarding our outlook, guidance, expectations, beliefs, hopes, intentions and strategies. These statements are subject to a number of risks, uncertainties, assumptions and other factors including those identified below. All forward-looking statements are based on information available to us at the time the statements are made. We undertake no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

You should not place undue reliance on our forward-looking statements. Actual events or results may differ materially from those expressed or implied in the forward-looking statements. The risks, uncertainties, assumptions and other factors that could cause actual events or results to differ from the events or results predicted or implied by our forward-looking statements include, among others, changes in our cash position or cash requirements for other purposes, fluctuations in the price of our common stock, general market conditions, and stockholder response to the repurchase program; and other factors discussed in our filings with the SEC, including those disclosed under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the year ended December 31, 2020 and in our subsequent Quarterly Reports on Form 10-Q. These reports are available on our investor relations website at lkqcorp.com and on the SEC website at sec.gov.

Contact:
Joseph P. Boutross
Vice President, Investor Relations
LKQ Corporation
(312) 621-2793
[email protected]

July 29, 2021 5:55 am

KBR Announces Second Quarter 2021 Financial Results; Updates FY 2021 Guidance

– Delivered robust revenue growth of 11% and adjusted EBITDA growth of 47%

– Generated strong free cash flow; free cash conversion of ~120% for the quarter and ~100% YTD

– Raising FY 2021 adjusted operating cash flow guidance to $300 million-$340 million

– Healthy bookings momentum, achieving book-to-bill ratio of 1.1x

PR Newswire

HOUSTON, July 29, 2021 /PRNewswire/ — KBR, Inc. (NYSE: KBR) today announced its second quarter 2021 financial results and updated FY 2021 financial guidance.

“KBR delivered an outstanding quarter with excellent results across all core metrics of growth, profitability, bookings and cash conversion,” said Stuart Bradie, KBR President and CEO. “The impressive double-digit top-line growth, terrific organic growth in Government Solutions, strong adjusted EBITDA margins delivering adjusted EBITDA growth of almost 50%, superb free cash conversion, and healthy book-to-bill of 1.1x all demonstrate the unwavering focus and superb execution of our team. Importantly, we also continued to deliver outstanding safety and operational performance, and we continued to reduce uncertainty by making meaningful progress in resolving legacy matters.”

Bradie added, “Today, KBR is well-positioned in growing end markets – advancing national security priorities, defense modernization, energy transition and sustainability. Given our strong operating performance, growing backlog, and continued confidence in our cash-generative business model, we are increasing our full-year 2021 cash guidance. With a foundation of enduring long-term contracts and strong macro-tailwinds that align with our expertise, we are confident that the company is well positioned for sustainable growth and value creation as we progress toward our 2025 goals and beyond.”

Summarized Second Quarter 2021 Financial Results

	Three Months Ended June 30,				Six Months Ended June 30,
Dollars in millions, except share data	2021		2020		2021		2020

Revenues	$	1,536	$	1,385	$	2,997	$	2,922
Gross Profit	$	207	$	142	375		328
Operating income (loss)	$	(88)	$	(12)	$	1	$	(81)
Adjusted EBITDA¹	$	156	$	106	$	291	$	218

Earnings (loss) per share:
Diluted earnings (loss) per share	$	(1.08)	$	(0.28)	$	(0.75)	$	(1.00)
Adjusted earnings per share¹	$	0.58	$	0.39	$	1.06	$	0.78

Cash flows:
Operating cash flows	$	104	$	109	$	154	$	150
Adjusted operating cash flows¹	$	108	$	113	$	165	$	178
Adjusted free cash flows¹	$	98	$	111	$	149	$	174
_________
¹ See additional information at the end of this release regarding non-GAAP financial measures.

Financial Highlights for the Quarter Ended June 30, 3021

Revenue of $1.5 billion, an 11% increase in the quarter, is aligned with management’s consolidated revenue guidance for the year of circa $6 billion.

Government Solutions posted $1.2 billion of revenue in the second quarter, a 29% increase over 2020. This increase reflects 13% organic growth with each government business unit delivering organic growth from new program wins and on-contract expansion driven by strong execution. Additionally, Centauri, acquired in October 2020, recorded over $180 million of revenue in the quarter, delivering healthy organic growth of 30% on top of acquisitive growth.
Sustainable Technology Solutions posted $0.3 billion of revenue in the second quarter, which is in line with our guided annual FY 2021 revenue expectations for this business following the company’s 2020 exit from commoditized services.

Gross profit, operating income (loss) and adjusted EBITDA were impacted by the following:

Gross profit and adjusted EBITDA each increased almost 50% period over period due to excellent Government Solutions organic growth, strong execution across the business and the acquisition of Centauri. Additionally, the company benefited from the net favorable resolution of and provisioning for legacy matters in Sustainable Technology Solutions that resulted in a net benefit of $16 million with attendant favorable operating cash flow.
Operating income (loss) was impacted by a non-cash charge to equity in earnings of unconsolidated affiliates in the amount of $193 million recorded based on the progress of settlement discussions during the quarter with the Ichthys LNG client. This charge reflects KBR’s proportionate share of unfunded client change orders and claims. Consistent with the company’s practice to present adjusted earnings net of Ichthys commercial recovery and settlement costs, this non-cash charge is excluded from adjusted EBITDA and adjusted EPS. Furthermore, this non-cash charge does not impact pursuit of, or positions related to, subcontractor claims associated with the combined cycle power plant for which the company continues to expect a favorable cash award or settlement upon resolution.

Selling, general and administrative expenses of $103 million increased $30 million compared to 2020, principally due to the acquisition of Centauri and an increase in corporate expenses associated with return to the office, increased travel and other initiatives, all in line with expectations.
In 2020, operating income (loss) was impacted by non-cash restructuring and impairment charges of $96 million that did not recur in 2021 in connection with the transformation of its operating model to narrow its strategic focus and reduce risk.

Recent Developments and New Business

In the quarter ended June 30, 2021, the company delivered 1.1x book-to-bill and was awarded approximately $1.9 billion in backlog and options, as follows:

Expanded footprint through new project/program wins, including a $51 million contract from the National Oceanic and Atmospheric Administration to develop, deploy and operate the agency’s Space Weather Follow-On Antenna Network to support forecasts of space weather and protection of lives and livelihood around the planet; and a $531 million contract awarded to a KBR joint venture to provide engineering services for spaceflight and ground systems, including the development and validation of new technologies for future space and science missions.
Continued track record of innovation, bringing new technologies and solutions to market, including the award of a contract to provide industry-leading, disruptive Hydro-PRT℠ plastics recycling technology to Mitsubishi Chemical Corporation; the award of a contract to provide industry-leading fluid catalytic cracking licensed technology and engineering design support; and an award to provide our AI- and data-enabled INSITE® solution, part of KBR’s digital sustainability suite, which leverages data, machine learning and our deep domain expertise to enable clients to proactively monitor and optimize plant operations.

Capital Deployment

KBR continues to employ a balanced approach to capital allocation, which includes organic and external investments that facilitate sustainable, long-term growth and the prudent return of capital to shareholders. Looking ahead, KBR will continue to leverage its talent, expertise and financial strength to capitalize on industry tailwinds, long-term market dynamics and accretive growth opportunities.

During the quarter, KBR repurchased $28 million of common shares and issued a quarterly dividend of $0.11 per share, an increase of 10% from 2020.

Updating FY 2021 Guidance

KBR updated its FY 2021 financial guidance, as follows:

Consolidated revenue: $5.8 billion to $6.2 billion (no change)
Adjusted EBITDA margin: ~9% (no change)
Effective tax rate: 25% to 26% (no change)
GAAP earnings (loss) per share (EPS): $(0.10) to $0.10; adjusted EPS: $2.00 to $2.20 (updated)

Updated GAAP EPS to reflect a $1.42 non-cash charge for Ichthys commercial dispute costs to reflect the progress of settlement discussions with the client during the quarter. Consistent with our practice to present our adjusted earnings net of Ichthys commercial recovery and settlement costs, we have excluded this non-cash charge from our adjusted EPS. This non-cash charge does not impact JKC’s position or pursuit of subcontractor claims, including those for the combined cycle power plant.
Updated GAAP EPS to reflect a $0.05 non-cash expense for the estimated impact of the enactment of a change to the UK statutory rate to 25% effective in 2023 on our net UK deferred tax liabilities. This item has been added back to Adjusted EPS.

GAAP operating cash flow (OCF): $255 million to $295 million; adjusted OCF: $300 million to $340 million (raised)

Conference Call Details

The company will host a conference call to discuss its second quarter 2021 financial results on Thursday, July, 29, 2021 at 7:30 a.m. Central Time. The conference call will be webcast simultaneously through the Investor Relations section of KBR’s website at investors.kbr.com. A replay of the webcast will be available shortly after the call on KBR’s website or by telephone at +1.719.457.0820, passcode: 5634287.

About KBR

We deliver science, technology and engineering solutions to governments and companies around the world. KBR employs approximately 29,000 people worldwide with customers in more than 80 countries and operations in 40 countries. KBR is proud to work with its customers across the globe to provide technology, value-added services, and long-term operations and maintenance services to ensure consistent delivery with predictable results. At KBR, We Deliver.

Visit www.kbr.com

Forward-Looking Statements

This press release and related comments by KBR management contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Some examples include statements regarding our plans, objectives, goals, strategies, future events, future financial performance and backlog information and other information that is not historical. When used in this press release, the words “estimates,” “expects,” “predicts,” “continues,” “looking ahead,” “well-positioned,” “anticipates,” “projects,” “plans,” “intends,” “believes,” “forecasts” or future or conditional verbs such as “will,” “should,” “could,” or “may,” and variations of such words or similar expressions are intended to identify forward-looking statements. Such statements are based upon our current expectations and various assumptions, which are made in good faith, and we believe there is a reasonable basis for them. However, because forward-looking statements relate to the future, they are subject to inherent risks, uncertainties and other factors that are difficult to predict and which could cause actual results to differ materially from the forward-looking statements contained in this press release.

Additional information about potential risk factors that could affect our business and financial results is included in our latest Form 10-K and any subsequent Forms 10-Q and 8-K. We caution you not to place undue reliance on the forward-looking statements included in this press release, which speak only as of the date hereof. We disclaim any intent or obligation, except as required by law, to revise or update this information to reflect new information or future events or circumstances. We also disclaim any duty to comment on or correct information that may be contained in reports published by investment analysts or others.

KBR, Inc.: Consolidated Statements of Operations (In millions, except for per share data) (Unaudited)

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Revenues:
Government Solutions	$	1,231	$	953	$	2,395	$	1,935
Sustainable Technology Solutions	305		432		602		987
Total revenues	1,536		1,385		2,997		2,922
Gross profit:
Government Solutions	130		117		246		246
Sustainable Technology Solutions	77		25		129		82
Total gross profit	207		142		375		328
Equity in earnings (losses) of unconsolidated affiliates:
Government Solutions	8		7		15		12
Sustainable Technology Solutions	(194)		9		(189)		5
Total equity in earnings of unconsolidated affiliates	(186)		16		(174)		17
Selling, general and administrative expenses
Government Solutions	(49)		(30)		(98)		(71)
Sustainable Technology Solutions	(21)		(19)		(35)		(43)
Corporate	(33)		(24)		(59)		(56)
Total selling, general and administrative expenses	(103)		(73)		(192)		(170)
Acquisition and integration related costs	(3)		—		(4)		—
Goodwill impairment	—		(37)		—		(99)
Restructuring charges and asset impairments	(2)		(59)		(2)		(175)
(Loss) gain on disposition of assets and investments	(1)		(1)		(2)		18
Operating income (loss)	(88)		(12)		1		(81)
Interest expense	(23)		(19)		(45)		(42)
Other non-operating income (loss)	2		(2)		(1)		5
Loss before income taxes and NCI	(109)		(33)		(45)		(118)
Provision for income taxes	(40)		(6)		(56)		(5)
Net loss	(149)		(39)		(101)		(123)
Net loss attributable to noncontrolling interests	(3)		—		(4)		(20)
Net loss attributable to KBR	$	(152)	$	(39)	$	(105)	$	(143)
Adjusted EBITDA¹	$	156	$	106	$	291	$	218
Diluted EPS	$	(1.08)	$	(0.28)	$	(0.75)	$	(1.00)
Adjusted EPS^{1, 2}	$	0.58	$	0.39	$	1.06	$	0.78
¹ See additional information at the end of this release regarding non-GAAP financial measures ² Adjusted EPS is calculated using a share count of 141 million shares outstanding for the quarter- and six-months ended June 30, 2021 and 142 million shares outstanding for the quarter- and six-months ended June 30, 2020

KBR, Inc. Consolidated Balance Sheets (In millions, except share data)

	June 30,		December 31,
	2021		2020
	(Unaudited)
Assets
Current assets:
Cash and equivalents	$	483	$	436
Accounts receivable, net of allowance for credit losses of $13 and $13	934		899
Contract assets	183		178
Other current assets	126		121
Total current assets	1,726		1,634
Claims and accounts receivable	30		30
Property, plant, and equipment, net	136		130
Operating lease right-of-use assets	161		154
Goodwill	1,763		1,761
Intangible assets, net of accumulated amortization of $265 and $228	654		683
Equity in and advances to unconsolidated affiliates	662		881
Deferred income taxes	245		297
Other assets	145		135
Total assets	$	5,522	$	5,705
Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable	$	633	$	574
Contract liabilities	278		356
Accrued salaries, wages and benefits	293		283
Nonrecourse project debt	—		5
Operating lease liabilities	41		44
Other current liabilities	198		193
Total current liabilities	1,443		1,455
Pension obligations	339		381
Employee compensation and benefits	99		110
Income tax payable	95		96
Deferred income taxes	16		26
Nonrecourse project debt	2		2
Long-term debt	1,585		1,584
Operating lease liabilities	194		186
Other liabilities	248		256
Total liabilities	4,021		4,096
KBR shareholders’ equity:
Paid-in capital in excess of par	2,240		2,222
Accumulated other comprehensive loss	(1,045)		(1,083)
Retained earnings	1,169		1,305
Treasury stock	(895)		(864)
Total KBR shareholders’ equity	1,469		1,580
Noncontrolling interests	32		29
Total shareholders’ equity	1,501		1,609
Total liabilities and shareholders’ equity	$	5,522	$	5,705

KBR, Inc.: Consolidated Statements of Cash Flows (In millions) (Unaudited)

	Six Months Ended June 30
Cash flows from operating activities:	2021		2020
Net loss	$	(101)	$	(123)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	76		48
Equity in (earnings) losses of unconsolidated affiliates	174		(17)
Deferred income tax	35		(16)
Loss (gain) on disposition of assets	2		(18)
Goodwill impairment	—		99
Asset impairments	—		90
Other	23		8
Changes in operating assets and liabilities:
Accounts receivable, net of allowance for credit losses	(29)		(40)
Contract assets	(4)		38
Accounts payable	65		23
Contract liabilities	(56)		(92)
Accrued salaries, wages and benefits	13		22
Payments on operating lease obligation	(30)		(28)
Payments from unconsolidated affiliates, net	10		7
Distributions of earnings from unconsolidated affiliates	26		15
Pension funding	(24)		(20)
Restructuring reserve	(14)		38
Other assets and liabilities	(12)		116
Total cash flows provided by operating activities	154		150
Cash flows from investing activities:
Purchases of property, plant and equipment	(16)		(4)
Investments in equity method joint ventures	(7)		(12)
Acquisition of businesses, net of cash acquired	—		(9)
Acquisition of technology licensing rights	(7)		—
Other	(8)		(1)
Total cash flows used in investing activities	(38)		(25)
Cash flows from financing activities:
Borrowings on long-term debt	—		113
Payments on borrowings	(19)		(263)
Debt issuance costs	—		(3)
Payments of dividends to shareholders	(30)		(26)
Net proceeds from issuance of common stock	10		3
Payments to reacquire common stock	(32)		(4)
Distributions to noncontrolling interests	(2)		(2)
Payment of contingent consideration liability	(1)		(1)
Total cash flows used in financing activities	(74)		(183)
Effect of exchange rate changes on cash	5		(19)
Increase (decrease) in cash and equivalents	47		(77)
Cash and equivalents at beginning of period	436		712
Cash and equivalents at end of period	$	483	$	635

KBR, Inc.: Backlog Information ^(a) (In millions)

	June 30,		December 31,
	2021		2020
Government Solutions	$	12,374	$	12,661
Sustainable Technology Solutions	2,512		2,454
Total backlog	$	14,886	$	15,115
Award options	5,020		3,899
Total backlog and options	$	19,906	$	19,014


(a)	Backlog generally represents the dollar amount of revenues we expect to realize in the future as a result of performing work on contracts and our pro-rata share of work to be performed by unconsolidated joint ventures. We generally include total expected revenues in backlog when a contract is awarded under a legally binding agreement. In many instances, arrangements included in backlog are complex, nonrepetitive and may fluctuate due to the release of contracted work in phases by the customer. Additionally, nearly all contracts allow customers to terminate the agreement at any time for convenience. Where contract duration is indefinite and clients can terminate for convenience without having to compensate us for periods beyond the date of termination, projects included in backlog are limited to the estimated amount of expected revenues within the following twelve months. Certain contracts provide maximum dollar limits, with actual authorization to perform work under the contract agreed upon on a periodic basis with the customer. In these arrangements, only the amounts authorized are included in backlog. For projects where we act solely in a project management capacity, we only include the value of our services on each project in backlog.

	We define backlog, as it relates to U.S. government contracts, as our estimate of the remaining future revenue from existing signed contracts over the remaining base contract performance period (including customer approved option periods) for which work scope and price have been agreed with the customer. We define funded backlog as the portion of backlog for which funding currently is appropriated, less the amount of revenue we have previously recognized. We define unfunded backlog as the total backlog less the funded backlog. Our Government Solutions backlog does not include any estimate of future potential delivery orders that might be awarded under our government-wide acquisition contracts, agency-specific indefinite delivery/indefinite quantity contracts, or other multiple-award contract vehicles nor does it include option periods that have not been exercised by the customer.

	Within our Government Solutions business segment, we calculate estimated backlog for long-term contracts associated with the U.K. government’s privately financed initiatives (“PFIs”) based on the aggregate amount that our client would contractually be obligated to pay us over the life of the project. We update our estimates of the future work to be executed under these contracts on a quarterly basis and adjust backlog if necessary.

	We have included in the table above our proportionate share of unconsolidated joint ventures’ estimated revenues. Since these projects are accounted for under the equity method, only our share of future earnings from these projects will be recorded in our results of operations. Our proportionate share of backlog for projects related to unconsolidated joint ventures totaled $2.8 billion at June 30, 2021, and $2.4 billion at December 31, 2020. Our backlog included in the table above for projects related to consolidated joint ventures includes 100% of the backlog associated with those joint ventures and totaled $46 million at June 30, 2021, and $52 million at December 31, 2020.

	We estimate that as of June 30, 2021, 27% of our backlog will be executed within one year. Of this amount, 83% will be recognized in revenues on our condensed consolidated statement of operations and 17% will be recorded by our unconsolidated joint ventures. As of June 30, 2021, $118 million of our backlog relates to active contracts that are in a loss position.

	As of June 30, 2021, 14% of our backlog was attributable to fixed-price contracts, 47% was attributable to PFIs, 25% was attributable to cost-reimbursable contracts, and 14% was attributable to time-and-materials contracts. For contracts that contain fixed-price, cost-reimbursable, and time-and-materials components, we classify the individual components as either fixed-price, cost-reimbursable, or time-and-materials according to the composition of the contract; however, for smaller contracts, we characterize the entire contract based on the predominant component. As of June 30, 2021, $9.4 billion of our Government Solutions backlog was currently funded by our customers. As of June 30, 2021, we had approximately $5.0 billion of priced option periods for U.S. government contracts.

Non-GAAP Financial Information

The following information provides reconciliations of certain non-GAAP financial measures presented in the press release to which this reconciliation is attached to the most directly comparable financial measures calculated and presented in accordance with generally accepted accounting principles (GAAP). The company has provided the non-GAAP financial information presented in the press release as information supplemental and in addition to the financial measures presented in the press release that are calculated and presented in accordance with GAAP. Such non-GAAP financial measures should not be considered superior to, as a substitute for or alternative to, and should be considered in conjunction with, the GAAP financial measures presented in the press release. The non-GAAP financial measures in the press release may differ from similar measures used by other companies.

EBITDA and Adjusted EBITDA

We evaluate performance based on EBITDA and Adjusted EBITDA. EBITDA is defined as Net income attributable to KBR, plus interest expense, net; provision for income taxes; other non-operating expense (income); and depreciation and amortization. Adjusted EBITDA excludes certain amounts included in EBITDA. EBITDA and Adjusted EBITDA for each of the three- and six-month periods ended June 30, 2021 and 2020 are considered non-GAAP financial measures under SEC rules because EBITDA and Adjusted EBITDA for each such period exclude certain amounts included in the calculation of net income attributable to KBR in accordance with GAAP for such periods. Management believes EBITDA and Adjusted EBITDA afford investors a view of what management considers KBR’s core performance for each of the three- and six-month periods ended June 30, 2021 and 2020 and also affords investors the ability to make a more informed assessment of such core performance for the comparable periods.

	Three Months Ended June 30,				Six Months Ended June 30,
Dollars in millions	2021		2020		2021		2020

Net income (loss) attributable to KBR	$	(152)	$	(39)	$	(105)	$	(143)
Adjustments
• Interest expense	23		19		45		42
• Benefit for income taxes	40		6		56		5
• Other non-operating loss (income)	(2)		2		1		(5)
• Depreciation and amortization	38		21		76		48
Consolidated EBITDA	$	(53)	$	9	$	73	$	(53)
Adjustments
• Acquisition, integration and restructuring	5		96		6		269
• Non-cash loss (gain) on legal entity rationalization	2		1		3		(7)
• Ichthys commercial dispute costs	198		(2)		201		5
• Legacy legal fees	4		2		8		4
Adjusted EBITDA	$	156	$	106	$	291	$	218

Adjusted EPS

Adjusted earnings per share (Adjusted EPS) for each of the three- and six-month periods ended June 30, 2021 and 2020 is considered a non-GAAP financial measure under SEC rules because the Adjusted EPS for each such period excludes certain amounts included in the diluted earnings per share calculated in accordance with GAAP for such periods. The most directly comparable financial measure calculated in accordance with GAAP is diluted EPS for the same periods. Management believes that Adjusted EPS affords investors a view of what management considers KBR’s core earnings performance for each of the three- and six-month periods ended June 30, 2021 and 2020 and also affords investors the ability to make a more informed assessment of such core earnings performance for the comparable periods.

We have calculated Adjusted EPS for each of the three- and six-month periods ended June 30, 2021 and 2020 by adjusting diluted EPS for the items included in the table below.

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020

Diluted loss per share	$	(1.08)	$	(0.28)	$	(0.75)	$	(1.00)
Adjustments
• Acquisition, integration and restructuring	$	0.03	$	0.59	$	0.03	$	1.66
• Ichthys interest and commercial dispute costs	$	1.46	$	0.02	$	1.50	$	0.07
• Non-cash imputed interest and conversion hedge on convertible bonds	$	0.02	$	0.02	$	0.04	$	0.03
• Amortization related to acquisitions	$	0.07	$	0.02	$	0.14	$	0.04
• Legacy legal fees	$	0.02	$	0.01	$	0.04	$	0.02
• Non-cash loss (gain) on legal entity rationalization	$	0.01	$	0.01	$	0.01	$	(0.04)
• Non-cash impact of future UK statutory tax rate increase	$	0.05	$	—	$	0.05	$	—
Adjusted EPS¹	$	0.58	$	0.39	$	1.06	$	0.78

———

(1) Adjusted EPS is calculated using a share count of 141 million shares outstanding for the quarter- and six-months ended June 30, 2021 and 142 million shares outstanding for the quarter- and six-months ended June 30, 2020

We have calculated the Adjusted EPS for the 2021 guidance by adjusting diluted EPS for the items included in the table below.

	Low	High

Diluted earnings (loss) per share guidance:	$(0.10)	$0.10
Adjustments
• Amortization related to acquisitions	$0.25
• Ichthys interest and commercial dispute costs	$1.59
• Acquisition, integration and restructuring	$0.09
• Non-cash imputed interest and conversion hedge on convertible bonds (1)	$0.06
• Legacy legal fees	$0.04
• Non-cash gain from legal entity rationalization	$0.02
• Non-cash impact of future UK statutory tax rate increase	$0.05
Adjusted EPS Guidance	$2.00	$2.20

———

(1) Conversion option will be calculated and adjusted quarterly based on KBR trading price

(2) Adjusted EPS guidance is calculated using a share count of 141 million shares outstanding

Adjusted Cash Flows Provided by Operating Activities and Adjusted Free Cash Flows

Adjusted operating cash flows and adjusted free cash flows are considered non-GAAP financial measures under SEC rules. Adjusted operating cash flows exclude certain amounts included in the cash flows provided by operating activities calculated in accordance with GAAP. Adjusted free cash flows exclude capital expenditures from adjusted operating cash flows. The most directly comparable financial measure calculated in accordance with GAAP is cash flows provided by operating activities. Management believes that adjusted operating cash flows and adjusted free cash flows afford investors a view of what management considers KBR’s core operating cash flow performance and also afford investors the ability to make a more informed assessment of such core operating cash generation performance.

We have calculated adjusted operating cash flows and adjusted free cash flows for each of the three- and six-month periods ended June 30, 2021 and 2020 by adjusting operating cash flow provided by operating activities for items included in the table below.

	Three Months Ended June 30,						Six Months Ended June 30,
Dollars in millions	2021			2020			2021			2020

Cash flows provided by operating activities	$	104		$	109		$	154		$	150
Add back: Major project advance work-off	4			26			11			50
Adjust: CARES Act temporary tax repayment (relief)	—			(22)			—			(22)
Adjusted operating cash flows	$	108		$	113		$	165		$	178
Less: Capital expenditures	(10)			(2)			(16)			(4)
Adjusted free cash flows	$	98		$	111		$	149		$	174

Adjusted free cash flow per share¹	$	0.70		$	0.78		$	1.06		$	1.23
Adjusted earnings per share	$	0.58		$	0.39		$	1.06		$	0.78
Adjusted free cash conversion	121		%	200		%	100		%	158		%

———

(1) Adjusted free cash flow per share is calculated using a share count of 141 million shares outstanding for the quarter- and six-months ended June 30, 2021 and 142 million shares outstanding for the quarter- and six-months ended June 30, 2020

We have calculated the 2021 guidance for adjusted operating cash flows by adjusting cash flows provided by operating activities for the items included in the table below.

Dollars in millions	Low	High

Cash flows provided by operating activities guidance	$255	$295
Adjustments:
• Impact of major project advance workoff	15
• Impact of CARES Act temporary tax repayment	30
Adjusted operating cash flows guidance	$300	$340

View original content to download multimedia:https://www.prnewswire.com/news-releases/kbr-announces-second-quarter-2021-financial-results-updates-fy-2021-guidance-301343895.html

SOURCE KBR, Inc.

July 29, 2021 5:33 am

Fortis Inc. Releases 2021 Sustainability Update and Announces Support for the Task Force on Climate-Related Financial Disclosures

ST. JOHN’S, Newfoundland and Labrador, July 29, 2021 (GLOBE NEWSWIRE) — Fortis Inc. (“Fortis” or the “Corporation”) (TSX/NYSE: FTS) has released its 2021 Sustainability Update.

Highlights:

Achieved 15% reduction in Scope 1 emissions in 2020 supporting 75% emissions reduction target by 2035
Signed on as a supporter of the Task Force on Climate-Related Financial Disclosures
Realized best safety performance in the Corporation’s history in 2020
Attained gender parity on the Board of Directors
Added new key performance indicators, a number of which align with Sustainability Accounting Standards Board standards
Reached top quartile reliability performance relative to industry peers

“Fortis continues to execute on its sustainability strategy and deliver cleaner energy to customers,” said David Hutchens, President and Chief Executive Officer, Fortis. “We are optimistic about the future and our ability to continue investment in the energy infrastructure needed to address climate change. Our actions and results to date show that we have both the plan and the commitment to ensure Fortis remains a strong, sustainable company for the benefit of all of our stakeholders.”

The report includes information on the Corporation’s progress to reduce emissions, updated sustainability key performance indicators and an announcement that Fortis is a supporter of the Task Force on Climate-Related Financial Disclosures (“TCFD”). By becoming a TCFD supporter, the Corporation has committed to fully implement the TCFD recommendations, including a climate scenario analysis to assess resiliency of its energy delivery businesses.

The core business of Fortis is to deliver electricity and natural gas to customers. Energy delivery represents 93% of our assets with the remaining assets associated with generation. More than $800 million of capital expenditures in 2020 focused on delivering cleaner energy to customers.

Notably, Fortis achieved a 15% reduction in Scope 1 emissions, equivalent to taking 400,000 vehicles off the road in one year. This reduction was largely due to the closure of the Navajo Coal Generation Facility at Tucson Electric Power (“TEP”) in late 2019 and demonstrates progress towards our target to reduce carbon emissions by 75% by 2035 from a 2019 base year. This corporate-wide target builds on our existing low emissions profile, aligns with the goals of the Paris Agreement and exceeds the pace of reduction outlined in the two-degree Celsius pathway.

Fortis plans to achieve this target primarily through delivering on TEP’s goal to reduce carbon emissions by exiting coal generation and adding approximately 2,400 megawatts of wind and solar power systems and 1,400 megawatts of energy storage systems. Clean energy initiatives across the Corporation’s other utilities will also contribute to achieving this goal. TEP is making steady advances on its energy transition, and in 2021 commissioned the 250-megawatt (“MW”) Oso Grande Wind project, and now receives an additional 100-MW of solar power with 30-MW of battery storage. With the addition of these two energy systems, TEP has approximately 1,000-MW of renewable energy on its system and can produce more than 25% of its energy from renewable resources.

The Corporation has also strengthened the linkage between sustainability and executive compensation with the addition of a new performance goal to address carbon reduction and climate change. Additionally, Fortis continues to increase its sustainability disclosures with over 50 new key performance indicators added to this year’s update report, including 14 that align with the Sustainability Accounting Standards Board (“SASB”) standards. Fortis plans to further align with the SASB standards over time.

“We are guided by leading ESG frameworks in developing our key performance indicators, which provide data related to our operations, employees, governance, policies, community support and our environmental performance,” said Nora Duke, Executive Vice President, Sustainability and Chief Human Resource Officer, Fortis. “We will continue to enhance our disclosures under these frameworks along with input received from stakeholders.”

About Fortis

Fortis is a well-diversified leader in the North American regulated electric and gas utility industry with 2020 revenue of $8.9 billion and total assets of $56 billion as at March 31, 2021. The Corporation’s 9,000 employees serve utility customers in five Canadian provinces, nine U.S. states and three Caribbean countries.

Fortis shares are listed on the TSX and NYSE and trade under the symbol FTS. Additional information can be accessed at www.fortisinc.com, www.sedar.com, or www.sec.gov.

Forward-Looking Information

Fortis includes forward-looking information in this medial release within the meaning of applicable Canadian securities laws and forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (collectively referred to as “forward-looking information”). Forward-looking information reflects expectations of Fortis management regarding future growth, results of operations, performance and business prospects and opportunities. Wherever possible, words such as anticipates, believes, budgets, could, estimates, expects, forecasts, intends, may, might, plans, projects, schedule, should, target, will, would and the negative of these terms and other similar terminology or expressions have been used to identify the forward-looking information, which includes, without limitation: the 2035 carbon emissions reduction target and projected Tucson Electric Power asset mix.

Forward looking information involves significant risks, uncertainties and assumptions. Certain material factors or assumptions have been applied in drawing the conclusions contained in the forward-looking information, including, without limitation: no material impact from the COVID-19 pandemic; reasonable outcomes for regulatory proceedings and the expectation of regulatory stability; the successful execution of the five-year capital plan; no material capital project or financing cost overruns; sufficient human resources to deliver service and execute the capital expenditure plan; no significant variability in interest rates; and no significant changes in government energy plans, environmental laws and regulations that could have a material negative impact. Fortis cautions readers that a number of factors could cause actual results, performance or achievements to differ materially from the results discussed or implied in the forward looking information. These factors should be considered carefully and undue reliance should not be placed on the forward looking information. For additional information with respect to certain of these risks or factors, reference should be made to the continuous disclosure materials filed from time to time by the Corporation with Canadian securities regulatory authorities and the Securities and Exchange Commission. All forward-looking information herein is given as of the date of this media release. Fortis disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise.

A .pdf version of this press release is available at: http://ml.globenewswire.com/Resource/Download/cc9774cd-6850-427e-8d9c-3abf18b4a272

For more information please contact
Investor Enquiries:	Media Enquiries:
Ms. Stephanie Amaimo	Ms. Karen McCarthy
Vice President, Investor Relations	Vice President, Communications & Corporate Affairs
Fortis Inc.	Fortis Inc.
248.946.3572	709.737.5323
[email protected]	[email protected]

July 29, 2021 5:33 am

QIWI to Announce Second Quarter 2021 Financial Results on August 19, 2021

NICOSIA, Cyprus, July 29, 2021 (GLOBE NEWSWIRE) — QIWI plc, (NASDAQ: QIWI) (MOEX: QIWI) (“QIWI” or the “Company”), a leading provider of next generation payment and financial services in Russia and the CIS, today announced that it will host a conference call and webcast on Thursday, August 19, 2021 at 8:30 a.m. ET to review the second quarter 2021 financial results. A press release with the second quarter 2021 financial results will be issued before the market opens on Thursday, August 19, 2021.

The conference call can be accessed live over the phone by dialing +1 (877) 407-3982 or for international callers by dialing +1 (201) 493-6780. A replay will be available at 11:30 a.m. ET and can be accessed by dialing +1 (844) 512-2921 or +1 (412) 317-6671 for international callers; the pin number is 13722017. The replay will be available until Thursday, September 2, 2021. The call will be webcast live from the Company’s website at https://www.qiwi.com under the Corporate Investor Relations section or directly at http://investor.qiwi.com/.

About QIWI

QIWI is a leading provider of next generation payment and financial services in Russia and the CIS. It has an integrated proprietary network that enables payment services across online, mobile and physical channels. It has deployed over 16.6 million virtual wallets, over 106,000 kiosks and terminals, and enabled merchants and customers to accept and transfer over RUB 128 billion cash and electronic payments monthly connecting over 29 million consumers using its network at least once a month. QIWI’s consumers can use cash, stored value and other electronic payment methods to pay for goods and services or transfer money across virtual or physical environments interchangeably.

Contact

Investor Relations
+357.25028091
[email protected]

July 29, 2021 5:33 am

NICE Provides Dial-in Details for its Second Quarter 2021 Results Teleconference

NICE Provides Dial-in Details for its Second Quarter 2021 Results Teleconference

HOBOKEN, N.J.–(BUSINESS WIRE)–NICE (Nasdaq: NICE) will announce its second quarter 2021 results on Thursday, August 5^th, before the opening of the NASDAQ Stock Exchange.

Later that day, management will host a conference call to discuss the results.

8:30 AM – Eastern

1:30 PM – UK

3:30 PM – Israel

To participate, please call one of the dial-in numbers approximately 15 minutes before the start time:

US: +1-877-300-8521 (toll free) or +1-412-317-6026

Israel: 1-809-213-284 (toll free)

UK: 0-800-279-9489 (toll free)

When prompted please give your name and company.

If you need assistance during the conference, press * then 0 on your telephone and a conference coordinator will be happy to assist you.

The call will be webcast live on the Company’s website at https://www.nice.com/investor-relations/upcoming-event

Kind Regards,

NICE Investor Relations

About NICE

NICE (Nasdaq: NICE) is the world’s leading provider of both cloud and on-premises enterprise software solutions that empower organizations to make smarter decisions based on advanced analytics of structured and unstructured data. NICE helps organizations of all sizes deliver better customer service, ensure compliance, combat fraud and safeguard citizens. Over 25,000 organizations in more than 150 countries, including over 85 of the Fortune 100 companies, are using NICE solutions. www.nice.com.

Trademark Note: NICE and the NICE logo are trademarks or registered trademarks of NICE Ltd. All other marks are trademarks of their respective owners. For a full list of NICE’s marks, please see: www.nice.com/nice-trademarks.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210729005397/en/

Investors

Marty Cohen, +1-551-256-5354, ET, [email protected]

Omri Arens, +972-3-763-0127, CET, [email protected]

Corporate Media Contact

Christopher Irwin-Dudek, 201-561-4442, [email protected]

KEYWORDS: United States United Kingdom North America Middle East Israel Europe New Jersey

INDUSTRY KEYWORDS: Data Management Technology Other Technology Mobile/Wireless Software Internet

MEDIA:

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July 29, 2021 5:03 am

Vista Outdoor Announces Record FY22 First Quarter Financial Results

Total Sales Increase 38% to $663 Million; Shooting Sports Sales Up 39%; Outdoor Products Sales Up 38%

Delivers Record EBIT of $144 Million and EBITDA Margin of 24%

Record GAAP EPS of $1.71 and Adjusted EPS of $1.74

Bushnell Golf Signs Exclusive Domestic Partnership with Foresight Sports; Enters Consumer Launch Monitor and Simulation Market

PR Newswire

ANOKA, Minn., July 29, 2021 /PRNewswire/ — Vista Outdoor Inc. (NYSE: VSTO), a leading global designer, manufacturer and marketer of products in the outdoor sports and recreation markets, today reported financial results for the first quarter of its Fiscal Year 2022 (FY22), which ended on June 27, 2021.

“Fiscal year 2022 is off to a terrific start with our fourth consecutive quarter of record performance due to strong demand, great execution and a powerhouse line up of innovative outdoor products,” said Vista Outdoor Chief Executive Officer Chris Metz. “The credit goes to our team who continues to tirelessly work towards being one of the industry’s most admired companies while consistently delivering great shareholder returns.

“We are successfully executing on our value creation framework and deploying the levers of organic growth, innovation and select acquisitions. We are driving organic growth through new product development across our family of brands. We increased R&D investment by 17 percent to accelerate the pipeline of innovative gear in high demand as more consumers are recreating outdoors. We entered the golf simulation market through an exclusive domestic partnership with Foresight Sports, the leader in golf launch monitor technology, and can’t wait to introduce our new Launch Pro this Fall. And, we closed and integrated two exciting acquisitions in high growth segments playing to key market trends. The premium e-Bike brand, QuietKat, and the female, hunt-inspired apparel brand, Venor, joined the Vista Outdoor family of brands during the first quarter,” concluded Metz.

For the three months ended June 27, 2021 versus the three months ended June 28, 2020:

Sales increased 38 percent to $663 million
Gross profit rose 93 percent to $241 million and gross profit margin improved by 1025 bps
Operating expenses were 15 percent of sales and improved by 139 bps. Adjusted operating expenses were 15 percent of sales and improved by 163 bps.
Earnings before interest and taxes (EBIT) increased to $144 million, from $48 million. Adjusted EBIT increased to $146 million, from $48 million.
Interest expense decreased 12 percent to $6 million.
Fully Diluted Earnings per Share (EPS) was $1.71, compared with $0.69. Adjusted EPS was $1.74, compared with $0.51.
Cash flow provided by operating activities was $29 million, compared with cash provided of $77 million. Free cash flow generation was $36 million, compared with $73 million.

For the three months ended June 27, 2021 operating segment results versus the three months ended June 28, 2020:

Shooting Sports

Sales rose 39 percent to $463 million, driven by 39 percent growth in ammunition and 37 percent growth in our hunting and shooting category.
Gross profit increased 115 percent to $181 million. Margin acceleration was the result of operating leverage, mix, and price.
EBIT increased 160 percent to $142 million. EBIT Margin improved by 1426 bps to 31 percent from 16 percent.

Outdoor Products

Sales were up 38 percent to $200 million, driven by strong double-digit growth across all categories.
Gross profit increased 48 percent to $61 million, due to higher volume and higher margin product mix, partially offset by higher logistics costs. Gross profit margin was 30.3%, up 212 bps.
EBIT increased 125 percent to $26 million. EBIT Margin improved by 505 bps to 13 percent from 8 percent.

Please see the tables in the press release for a reconciliation of non-GAAP adjusted gross profit, EBIT, taxes, earnings per share, and free cash flow to the comparable GAAP measures.

Outlook for Fiscal Year 2022 Second Quarter

“Our first quarter results exceeded our expectations in terms of sales and profit growth across both segments,” said Sudhanshu Priyadarshi, Chief Financial Officer of Vista Outdoor. “Sales increased 38 percent and we drove record profitability in the first quarter with adjusted EBITDA margins of 24.4 percent. As part of our disciplined capital allocation strategy, we repurchased 1.2 million shares. With strong performance and a low leverage ratio of 0.7 times, we have significant financial flexibility to continue to invest in the future growth of our brands and make strategic acquisitions in the outdoor space.

“Vista Outdoor is well positioned to enhance stakeholder value. Our financial strength, portfolio of leading brands, and favorable consumer trends position Vista Outdoor incredibly well for the long term,” concluded Priyadarshi.

Based on results to date and the current market environment, Vista Outdoor’s outlook for second quarter Fiscal Year 2022 is as follows, which includes the recent acquisitions of QuietKat and Venor as well as HEVI-Shot and Remington:

Sales in a range of $710 million to $730 million, compared with $575 million in the prior year quarter.
Earnings per Share in a range of $1.70 to $1.80, compared with $1.10 of adjusted EPS in the prior year quarter.

Vista Outdoor is updating the following assumptions for Fiscal Year 2022 on a full-year basis:

Tax rate is expected to be in the mid 20 percent range
Interest expense is expected to be in line with prior year adjusted interest expense
Capital expenditures are expected to be approximately 30 percent higher than FY21
R&D expenses are expected to be approximately 25 percent higher than FY21

Earnings Conference Call Webcast Information

Vista Outdoor will hold an investor conference call to discuss its first quarter FY22 financial results and outlook on July 29, 2021, at 9 a.m. ET. The conference call will be accessible through live webcast. Interested investors and other individuals can access the webcast and view and/or download the earnings press release, including a reconciliation of non-GAAP financial measures, and the related earnings release presentation slides, which will also include detailed segment information, via Vista Outdoor’s website (www.vistaoutdoor.com). Choose “Investors” then “Events and Presentations”. For those who cannot participate in the live webcast, a telephone recording of the conference call will be available for one month after the call. The telephone number is 719-457-0820, and the confirmation code is 8590251.

Reconciliation of Non-GAAP Financial Measures

In addition to the results prepared in accordance with GAAP, we are providing the information below on a non-GAAP basis, including adjusted gross profit, adjusted operating expenses, adjusted earnings before interest and tax (EBIT), adjusted taxes, adjusted net income, and adjusted fully diluted earnings per share (EPS). Vista Outdoor defines these measures as, gross profit, operating expenses, EBIT, taxes, net income, and EPS excluding, where applicable, the impact of costs incurred for inventory step-up expense, transaction costs, transition costs, post-acquisition compensation, and tax valuation allowance. Vista Outdoor management is presenting these measures so a reader may compare gross profit, operating expenses, EBIT, taxes, net income, and EPS excluding these items, as the measures provide investors with an important perspective on the operating results of the Company. Vista Outdoor management uses this measurement internally to assess business performance, and Vista Outdoor’s definition may differ from those used by other companies.

Three months ended June 27, 2021
(in thousands)
	Gross Profit		Operating Expenses		EBIT		Taxes		Net Income		EPS
As reported	$	241,427	$	97,771	$	143,656	$	(35,253)	$	102,725	$	1.71
Inventory step-up expense	384		—		384		(96)		288		—
Transaction cost	—		(949)		949		(61)		888		0.01
Transition costs	—		(99)		99		(25)		74		—
Post-acquisition compensation	—		(546)		546		—		546		0.01
As adjusted	$	241,811	$	96,177	$	145,634	$	(35,435)	$	104,521	$	1.74

Three months ended June 28, 2020
(in thousands)
	Gross Profit		Operating Expenses		EBIT		Taxes		Net Income		EPS
As reported	$	125,368	$	77,325	$	48,043	$	(1,149)	$	40,476	$	0.69
Tax valuation allowance	—		—		—		(10,396)		(10,396)		(0.18)
As adjusted	$	125,368	$	77,325	$	48,043	$	(11,545)	$	30,080	$	0.51

*NOTE: Adjustments to “as reported” results are items that are excluded to arrive at the “as adjusted” results for the quarters ended June 27, 2021 and June 28, 2020. EPS amounts may not
foot due to rounding.

Three months ended June 27, 2021:

During the three months ended June 27, 2021, we incurred cost of goods sold related to the fair value step-up in inventory allocated from the HEVI-Shot acquisition purchase price. Given the infrequent and unique nature of this acquisition, the company believes these costs are not indicative of ongoing operations. The tax effect of the amortization expense that is deductible for tax was calculated based on a blended statutory rate of approximately 25 percent.

During the three months ended June 27, 2021, we incurred transaction costs associated with possible and actual transactions, including advisory and legal fees. Given the nature of transaction costs, and differences in these amounts from one transaction to another, the company believes these costs are not indicative of ongoing operations of the company. A portion of the transaction costs is not deductible for tax, therefore this was calculated based on a statutory rate of 6 percent.

During the three months ended June 27, 2021, we incurred transition costs for the Remington, HEVI-Shot, QuietKat and Venor business to integrate the business into the company such as severance, retention, professional fees and travel costs. Given the infrequent and unique nature of this acquisition, the company believes these costs are not indicative of ongoing operations. The tax effect of the transition costs that are deductible for tax was calculated based on a blended statutory rate of approximately 25 percent.

During the three months ended June 27, 2021, we incurred post-acquisition compensation expense related to the QuietKat acquisition. Given the infrequent and unique nature of this acquisition, the company believes these costs are not indicative of ongoing operations. The post-acquisition compensation is not deductible for tax, therefore this was calculated based on a statutory rate of 0 percent.

As noted above, our reported tax expense of $35,253 results in a tax rate of 25.5 percent and our adjusted tax expense of $35,435 results in an adjusted tax rate of 25.3 percent.

Three months ended June 28, 2020:

During the three months ended June 28, 2020, we recorded a tax valuation allowance of $10.4 million to recognize the utilization of available tax assets to offset otherwise payable taxes. The tax assets arise from tax losses and other tax attributes that could not be realized in the contemporaneous period. The company began FY21 with $38 million of tax-effected operating loss, credits and interest deduction carry forwards that can be used to reduce cash taxes as qualifying taxable income is generated over the remainder of FY21 and into the future. Given the infrequent and unique nature of this tax valuation allowance, we do not believe the $10.4 million reduction in tax expense related to the tax valuation allowance of the deferred tax assets is indicative of operations of the company.

Free Cash Flow

Free cash flow is defined as cash provided by operating activities less capital expenditures, and excluding the following costs which have been adjusted for applicable tax amounts: inventory step-up, transaction and transition costs paid to date, and pre-paid post-acquisition compensation. Vista Outdoor management believes free cash flow provides investors with an important perspective on the cash available for debt repayment, share repurchases and acquisitions after making the capital investments required to support ongoing business operations. Vista Outdoor management uses free cash flow internally to assess both business performance and overall liquidity.


	Three months ended
(in thousands)	June 27, 2021		June 28, 2020
Cash provided by operating activities	$	28,772	$	77,363
Capital Expenditures	(6,876)		(4,472)
Inventory step-up expense	(96)		—
Transaction costs	888		—
Transition costs	74		—
Post-acquisition compensation	13,000		—
Free cash flow	$	35,762	$	72,891

EBITDA Margin

EBITDA margin is defined as EBITDA (earnings before interest, taxation, depreciation and amortization) divided by net sales. Vista Outdoor management believes EBITDA margin provides investors with an important perspective on the Company’s core profitability and helps investors analyze underlying trends in the Company’s business and evaluate its performance on an absolute basis and relative to its peers. EBITDA margin should be considered in addition to, and not as a substitute for, GAAP net profit margin. Vista Outdoor’s definition may differ from that used by other companies.

Vista Outdoor has not reconciled EBITDA margin guidance to GAAP net profit margin guidance because Vista Outdoor does not provide guidance for net income, which is a reconciling item between GAAP net profit margin and non-GAAP EBITDA margin. Accordingly, a reconciliation to net profit margin is not available without unreasonable effort.

About Vista Outdoor Inc.

Vista Outdoor is a leading global designer, manufacturer, and marketer of outdoor recreation and shooting sports products. We operate through two reportable segments: Shooting Sports and Outdoor Products. Together, our segments serve the outdoor sports and recreation markets through a diverse portfolio of well-recognized brands that provide consumers with a wide range of performance-driven, high-quality and innovative products. Brands include Remington Ammunition, Bushnell, CamelBak, Bushnell Golf, Bell Helmets, Camp Chef, Giro, QuietKat, Federal Ammunition and more. Vista Outdoor products are sold at leading retailers and distributors across North America and worldwide. For news and information, visit our website or investor relations page and follow us on Twitter.

Forward-Looking Statements

Certain statements in this press release and other oral and written statements made by Vista Outdoor from time to time are forward-looking statements, including those that discuss, among other things: Vista Outdoor’s plans, objectives, expectations, intentions, strategies, goals, outlook or other non-historical matters; projections with respect to future revenues, income, earnings per share or other financial measures for Vista Outdoor; and the assumptions that underlie these matters. The words ‘believe’, ‘expect’, ‘anticipate’, ‘intend’, ‘aim’, ‘should’ and similar expressions are intended to identify such forward-looking statements. To the extent that any such information is forward-looking, it is intended to fit within the safe harbor for forward-looking information provided by the Private Securities Litigation Reform Act of 1995. Numerous risks, uncertainties and other factors could cause Vista Outdoor’s actual results to differ materially from expectations described in such forward-looking statements, including the following: impacts from the COVID-19 pandemic on Vista Outdoor’s operations, the operations of our customers and suppliers and general economic conditions; general economic and business conditions in the United States and Vista Outdoor’s other markets outside the United States, including conditions affecting employment levels, consumer confidence and spending, conditions in the retail environment, and other economic conditions affecting demand for our products and the financial health of our customers; Vista Outdoor’s ability to attract and retain key personnel and maintain and grow its relationships with customers, suppliers and other business partners, including Vista Outdoor’s ability to obtain acceptable third party licenses; Vista Outdoor’s ability to adapt its products to changes in technology, the marketplace and customer preferences, including our ability to respond to shifting preferences of the end consumer from brick and mortar retail to online retail; Vista Outdoor’s ability to maintain and enhance brand recognition and reputation; others’ use of social media to disseminate negative commentary about us and boycotts; reductions in or unexpected changes in or our inability to accurately forecast demand for ammunition, accessories or other outdoor sports and recreation products; risks associated with Vista Outdoor’s sales to significant retail customers, including unexpected cancellations, delays and other changes to purchase orders; supplier capacity constraints, production disruptions or quality or price issues affecting Vista Outdoor’s operating costs; Vista Outdoor’s competitive environment; risks associated with diversification into new international and commercial markets including regulatory compliance; changes in the current tariff structures; the supply, availability and costs of raw materials and components; increases in commodity, energy and production costs; changes in laws, rules and regulations relating to Vista Outdoor’s business, such as federal and state ammunition regulations; Vista Outdoor’s ability to realize expected benefits from acquisitions and integrate acquired businesses; Vista Outdoor’s ability to take advantage of growth opportunities in international and commercial markets; foreign currency exchange rates and fluctuations in those rates; the outcome of contingencies, including with respect to litigation and other proceedings relating to intellectual property, product liability, warranty liability, personal injury and environmental remediation; risks associated with cybersecurity and other industrial and physical security threats; capital market volatility and the availability of financing; changes to accounting standards or policies; and changes in tax rules or pronouncements. You are cautioned not to place undue reliance on any forward-looking statements we make. Vista Outdoor undertakes no obligation to update any forward-looking statements except as otherwise required by law. For further information on factors that could impact Vista Outdoor, and statements contained herein, please refer to Vista Outdoor’s filings with the Securities and Exchange Commission.

VISTA OUTDOOR INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) (preliminary and unaudited)
	Three months ended
(Amounts in thousands except per share data)	June 27, 2021		June 28, 2020
Sales, net	$	662,912	$	479,140
Cost of sales	421,485		353,772
Gross profit	241,427		125,368
Operating expenses:
Research and development	5,868		5,010
Selling, general, and administrative	91,903		72,315
Earnings before interest and income taxes	143,656		48,043
Interest expense, net	(5,678)		(6,418)
Earnings before income taxes	137,978		41,625
Income tax provision	(35,253)		(1,149)
Net income	$	102,725	$	40,476
Earnings per common share:
Basic	$	1.77	$	0.70
Diluted	$	1.71	$	0.69
Weighted-average number of common shares outstanding:
Basic	58,123		58,057
Diluted	59,947		58,957

VISTA OUTDOOR INC. CONDENSED CONSOLIDATED BALANCE SHEETS (preliminary and unaudited)
(Amounts in thousands except share data)	June 27, 2021		March 31, 2021
ASSETS
Current assets:
Cash and cash equivalents	$	208,670	$	243,265
Net receivables	357,334		301,575
Net inventories	505,077		454,504
Income tax receivable	4,324		37,870
Other current assets	44,614		27,018
Total current assets	1,120,019		1,064,232
Net property, plant, and equipment	192,465		197,531
Operating lease assets	74,541		72,400
Goodwill	97,773		86,082
Net intangible assets	329,649		314,955
Deferred charges and other non-current assets, net	37,356		29,739
Total assets	$	1,851,803	$	1,764,939
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	169,459	$	163,839
Accrued compensation	40,724		63,318
Federal excise, use, and other taxes	26,651		23,092
Other current liabilities	127,549		120,568
Total current liabilities	364,383		370,817
Long-term debt	495,701		495,564
Deferred income tax liabilities	12,869		8,235
Long-term operating lease liabilities	79,123		77,375
Accrued pension and postemployment benefits	31,177		33,503
Other long-term liabilities	67,871		42,448
Total liabilities	1,051,124		1,027,942

Common stock — $.01 par value:
Authorized — 500,000,000 shares
Issued and outstanding — 57,538,158 shares as of June 27, 2021 and 58,561,016 shares as of March 31, 2021	575		585
Additional paid-in capital	1,727,204		1,731,479
Accumulated deficit	(591,311)		(694,036)
Accumulated other comprehensive loss	(82,200)		(83,195)
Common stock in treasury, at cost — 6,426,281 shares held as of June 27, 2021 and 5,403,423 shares held as of March 31, 2021	(253,589)		(217,836)
Total stockholders’ equity	800,679		736,997
Total liabilities and stockholders’ equity	$	1,851,803	$	1,764,939

VISTA OUTDOOR INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (preliminary and unaudited)
	Three months ended
(Amounts in thousands)	June 27, 2021		June 28, 2020
Operating Activities:
Net income	$	102,725	$	40,476
Adjustments to net income to arrive at cash provided by operating activities:
Depreciation	11,247		11,533
Amortization of intangible assets	4,998		4,953
Amortization of deferred financing costs	347		377
Deferred income taxes	312		(94)
(Gain)/loss on disposal of property, plant, and equipment	(3)		195
Share-based compensation	7,038		4,404
Changes in assets and liabilities:
Net receivables	(54,919)		(10,986)
Net inventories	(47,925)		(761)
Accounts payable	6,188		26,526
Accrued compensation	(22,813)		(11,820)
Accrued income taxes	36,236		982
Federal excise, use, and other taxes	3,522		1,180
Pension and other postretirement benefits	(1,363)		(6,894)
Other assets and liabilities	(16,818)		17,292
Cash provided by operating activities	28,772		77,363
Investing Activities:
Capital expenditures	(6,876)		(4,472)
Acquisition of businesses, net of cash received	(8,488)		—
Proceeds from the disposition of property, plant, and equipment	6		20
Cash used for investing activities	(15,358)		(4,452)
Financing Activities:
Borrowings on lines of credit	—		9,076
Payments on lines of credit	—		(77,332)
Payments made for debt issuance costs	(955)		—
Purchase of treasury shares	(44,232)		—
Proceeds from exercise of stock options	197		—
Payment of employee taxes related to vested stock awards	(3,018)		(100)
Cash used for financing activities	(48,008)		(68,356)
Effect of foreign exchange rate fluctuations on cash	(1)		129
(Decrease)/increase in cash and cash equivalents	(34,595)		4,684
Cash and cash equivalents at beginning of period	243,265		31,375
Cash and cash equivalents at end of period	$	208,670	$	36,059



Media Contact:	Investor Contact:

Fred Ferguson	Shelly Hubbard
Phone: 571-343-7006	Phone: 612-518-5406
E-mail: [email protected]	E-mail: [email protected]

View original content to download multimedia:https://www.prnewswire.com/news-releases/vista-outdoor-announces-record-fy22-first-quarter-financial-results-301343963.html

SOURCE Vista Outdoor Inc.

July 29, 2021 5:03 am

Bilibili to Hold Extraordinary General Meeting on September 1, 2021

SHANGHAI, China, July 29, 2021 (GLOBE NEWSWIRE) — Bilibili Inc. (the “Company” or “Bilibili”) (Nasdaq: BILI and HKEX: 9626), an iconic brand and a leading video community for young generations in China, today published a notice to announce that it will hold an extraordinary general meeting (the “EGM”) of shareholders (the “Notice of EGM”) at Building 3, Guozheng Center, No. 485 Zhengli Road, Yangpu District, Shanghai, People’s Republic of China on September 1, 2021 at 5:30 p.m. (Beijing time) (or soon after the Class Y Meeting and the Class Z Meeting, both of which are defined below), for the purposes of considering and, if thought fit, passing the Proposed Resolutions set forth in the Notice of EGM. The Notice of EGM and form of proxy for the EGM are available on the Company’s website at https://ir.bilibili.com/. The board of directors of Bilibili fully supports the Proposed Resolutions (defined in the Notice of EGM) and recommends that shareholders and holders of ADSs vote in favor of the resolutions set out in the Notice of EGM.

The Company will hold a class meeting of holders of the Class Y ordinary shares with a par value of US$0.0001 each (the “Class Y Meeting”) and a class meeting of holders of Class Z ordinary shares with a par value of US$0.0001 each (the “Class Z Meeting”) convened on the same date and at the same place as the EGM, for the purposes of considering and, if thought fit, passing the Class-based Resolution set forth respectively in the notice of each of the Class Y Meeting and the Class Z Meeting. The notice and form of proxy for each of the Class Y Meeting and the Class Z Meeting are available on the Company’s website at https://ir.bilibili.com/.

Holders of record of ordinary shares of the Company at the close of business on July 28, 2021 (Hong Kong time) are entitled to notice of, to attend and vote at, the EGM or any adjournment or postponement thereof, and, as applicable, the Class Y Meeting or the Class Z Meeting. Holders of the Company’s American depositary shares (“ADSs”) as of the close of business on July 28, 2021 (New York time) who wish to exercise their voting rights for the underlying Class Z ordinary shares must act through the depositary of the Company’s ADS program, Deutsche Bank Trust Company Americas.

Bilibili has filed its annual report on Form 20-F, including its audited financial statements, for the fiscal year ended December 31, 2020, with the U.S. Securities and Exchange Commission. Bilibili’s Form 20-F can be accessed on the Company’s website at https://ir.bilibili.com/, as well as on the SEC’s website at http://www.sec.gov.

About Bilibili Inc.

Bilibili represents an iconic brand and a leading video community with a mission to enrich the everyday life of young generations in China. Bilibili offers a wide array of video-based content with All the Videos You Like as its value proposition. Bilibili builds its community around aspiring users, high-quality content, talented content creators and the strong emotional bond among them. Bilibili pioneered the ‘‘bullet chatting’’ feature, a live commenting function that has transformed the viewing experience by displaying thoughts and feelings of other audience viewing the same video. It has now become the welcoming home of diverse cultures and interests and destination for discovering cultural trends and phenomena for young generations in China.

For more information, please visit: http://ir.bilibili.com.

Safe Harbor Statement

This announcement contains statements that may constitute “forward-looking” statements pursuant to the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expect,” “anticipate,” “going forward,” “intend,” “plan,” “believe,” “estimate” and similar statements. Bilibili may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (“SEC”), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about Bilibili’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. Further information regarding these and other risks is included in Bilibili’s filings with the SEC and the prospectus registered in Hong Kong. All information provided in this press release and in the attachments is as of the date of this press release, and Bilibili undertakes no duty to update any such information, except as required under applicable law.

Contacts for Investors:

In China:

Bilibili Inc.
Juliet Yang
Tel: +86-21-2509-9255 Ext. 8523
E-mail: [email protected]

The Piacente Group, Inc.
Emilie Wu
Tel: +86-21-6039-8363
E-mail: [email protected]

In the United States:

The Piacente Group, Inc.
Brandi Piacente
Tel: +1-212-481-2050
E-mail: [email protected]

July 29, 2021 4:53 am

Avalara for Hospitality Helps Lodging Businesses Manage Tax Compliance

Avalara for Hospitality Helps Lodging Businesses Manage Tax Compliance

SEATTLE–(BUSINESS WIRE)–Avalara, Inc. (NYSE: AVLR),a leading provider of cloud-based tax compliance automation for businesses of all sizes, today announced the availability of Avalara for Hospitality, a solution for hotel chains, resorts, online travel agencies, property management groups, and short-term rental operators that automates the most onerous and time-consuming aspects of tax compliance, including calculation and filing of sales and lodging tax returns.

“Today’s announcement coincides with businesses in this sector emerging from shutdowns and curtailed operations, and developing a path forward to growth and profitability,” said Sanjay Parthasarathy, chief product officer at Avalara. “Many hospitality businesses have used the enforced downtime to implement new technologies that modernize operations, streamline processes via automation, gain efficiencies, and reduce the risk of audits and fines for noncompliance of tax and other obligations.Avalara for Hospitality helps these businesses manage the full breadth of their tax compliance commitments, and deal with the many changes in rates, rules, and new tax types added by jurisdictions.”

Address compulsory hospitality compliance obligations with Avalara

Avalara for Hospitality provides the following benefits to businesses:

Improve compliance. Maintaining accurate tax rates and rules is a labor-intensive process, whether a business is managing a single property or a chain of hotels. Getting rates wrong or not understanding total obligations can result in overpaying or underpaying taxes. Tax experts at Avalara track lodging and related tax rates at the city, county, and state level, and Avalara for Hospitality automates these tax calculations. Avalara also helps determine which taxes are owed and remits your funds to the jurisdiction on a regular cadence, facilitating compliance.

Streamline reporting. Manually consolidating data to determine tax obligations for online travel agencies, property management groups, and hotel chains via their back-end systems is a time-consuming process, prone to human error. Avalara for Hospitality can integrate with your existing hospitality marketplace, ERP, PMS, point-of-sale, or accounting platforms, delivering consistent rates and reporting across sales channels and internal systems.

Improve process efficiency. Preparing, filing, and remitting reports for city, county, and state jurisdictions requires significant manual effort, with even greater complexity if a business is operating properties in multiple jurisdictions or renting through multiple channels. Customers can offload returns preparation, filing, and remitting to Avalara. Avalara for Hospitality also allows businesses to write a single remittance check, and Avalara distributes the funds based on what is owed to each jurisdiction, helping to reduce costs and increase efficiency and compliance.

Reduce audit risk, improve customer experience. Streamline processes to create a simple, reliable booking experience that includes tax rates to show exact charges up front. In addition, improve pricing transparency while mitigating audit risk. Avalara integrates with booking platforms to provide a consistent rate, no matter how your customers make their reservation.

“Avalara for Hospitality provides businesses with a technology solution to solve for an ongoing, complex, time-consuming compliance burden that diverts resources away from business-building activities,” said Oliver Hoare, general manager for Lodging at Avalara. “As hotels and resorts begin a return to full capacity, streamlining a host of back-office operations including the calculation, filing, and remittance of lodging, sales, and other taxes is essential to remaining competitive, mitigating current and future risk, and maintaining a laser focus on growth.”

Avalara will continue to add new capabilities and functionality, including additional hospitality tax types, to upcoming releases of the Avalara for Hospitality solution.

For additional information on Avalara for Hospitality, please click here.

About Avalara

Avalara helps businesses of all sizes get tax compliance right. In partnership with leading ERP, accounting, ecommerce, and other financial management system providers, Avalara delivers cloud-based compliance solutions for various transaction taxes, including sales and use, VAT, GST, excise, communications, lodging, and other indirect tax types. Headquartered in Seattle, Avalara has offices across the U.S. and around the world in Brazil, Europe, and India. More information at avalara.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210729005205/en/

Media Contact

Brian Austin

[email protected]

707-799-9838

Investor Contact

Jennifer Gianola

[email protected]

650-499-9837

KEYWORDS: United States North America Washington

INDUSTRY KEYWORDS: Software Lodging Destinations Travel Vacation Accounting Professional Services Technology

MEDIA:

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Posted on July 29, 2021 4:38 am
Genetron Health Partners with Guizhou Province’s Dafang County to Lead Liver Cancer Early Screening Project

BEIJING, July 29, 2021 (GLOBE NEWSWIRE) — Genetron Holdings Limited (“Genetron Health” or the “Company”, NASDAQ: GTH), a leading precision oncology platform company in China that specializes in offering molecular profiling tests, early cancer screening products and companion diagnostics development, today announced that it will work with Guizhou Province’s Dafang County authorities to lead the “Early Screening for Regional Liver Cancer Prevention and Containment Demonstration Project”. Backed by the Central Committee of the Chinese Peasants and Workers Democratic Party and guided by China’s National Cancer Center, this project is a collective effort that will be carried out by the Dafang County Health Bureau, the People’s Hospital of Dafang, and Genetron Health.

The project seeks to push boundaries for leading cancer early screening technologies, products, and services in China’s rural markets, enabling healthcare efforts to reach a wider range of people. This project represents Genetron Health’s latest efforts to partner with local governments, following the Company’s previous partnership with Wuxi’s Huishan district.

Genetron Health will work with its partners to carry out early screening, diagnosis, treatment, follow-up screenings, and patient management for high risk liver cancer groups in Guizhou’s Dafang County. Genetron Health will establish a comprehensive cancer prevention and containment model that prioritizes prevention, and integrates it with long-term screening management, diagnosis, and treatment.

HCCscreen™, Genetron Health’s blood-based early screening test for hepatocellular carcinoma, will play a key role in this project. HCCscreen™ leverages Genetron Health’s original technology, Mutation Capsule, to simultaneously detect different biomarkers in a blood sample without reducing sensitivity; the technology can also be used repeatedly on the same blood sample. This enables it to obtain more comprehensive, accurate information in a manner that is not only simple, fast, and precise, but is also more accessible for doctors and patients. In 2019, China’s National Cancer Center used HCCscreen™’s liver cancer early screening liquid biopsy technology in a large-scale prospective cohort study. According to the project’s recently released data, HCCscreen™ was able to achieve 88% sensitivity and 93% specificity in a prospective cohort of 1,615 HBsAg positive patients, indicating performance superior to that of studies using ultrasound and AFP detection technology.

“Innovating medical technology begins with exploration, and extrapolating scientific research results to the general public is a core value of independent innovation. In response to the government’s ‘Healthy China 2030’ campaign, we have made extensive efforts to build a three-dimensional cancer prevention and containment system,” said Sizhen Wang, Co-Founder and CEO of Genetron Health.

“On one hand, we act as a driving force, working together with various partners and stakeholders across the value chain to promote the industry’s development. On the other hand, we use original technology to move precise cancer diagnosis forward to the early screening stage, enabling the prevention and containment of cancer across the entire cycle. More importantly, we are able to deeply penetrate local markets and make technology accessible to a wider population, enabling better, more equitable protection of people’s health,” concluded CEO Wang.

About Genetron Holdings Limited

Genetron Holdings Limited (“Genetron Health” or the “Company”) (Nasdaq:GTH) is a leading precision oncology platform company in China that specializes in cancer molecular profiling and harnesses advanced technologies in molecular biology and data science to transform cancer treatment. The Company has developed a comprehensive oncology portfolio that covers the entire spectrum of cancer management, addressing needs and challenges from early screening, diagnosis and treatment recommendations, as well as continuous disease monitoring and care. Genetron Health also partners with global biopharmaceutical companies and offers customized services and products. For more information, please visit ir.genetronhealth.com.

Safe Harbor Statement

This press release contains forward-looking statements within the meaning of federal securities laws, including statements regarding HCCscreen™ and Mutation Capsule, which involve risks and uncertainties that could cause the actual results to differ materially from the anticipated results and expectations expressed in these forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. Statements that are not historical facts, including statements about the Company’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties, and a number of factors could cause actual results to differ materially from those contained in any forward-looking statement. In some cases, forward-looking statements can be identified by words or phrases such as “may”, “will,” “expect,” “anticipate,” “target,” “aim,” “estimate,” “intend,” “plan,” “believe,” “potential,” “continue,” “is/are likely to” or other similar expressions. Further information regarding these and other risks, uncertainties or factors is included in the Company’s filings with the SEC. All information provided in this press release is as of the date of this press release, and the Company does not undertake any duty to update such information, except as required under applicable law.

Investor Relations Contact
US:
Hoki Luk
Head of Investor Relations
Email: [email protected]
Phone: +1 (408) 891-9255

Media Relations Contact
Yanrong Zhao
Genetron Health
[email protected]

Posted on July 29, 2021 4:32 am
Accenture Acquires Openmind in Italy to Help Clients Reimagine Commerce Experiences

Accenture Acquires Openmind in Italy to Help Clients Reimagine Commerce Experiences

Openmind’s multi-channel solutions will enhance Accenture Interactive’s ability to deliver seamless, cloud-based commerce experiences at scale

MILAN–(BUSINESS WIRE)–
Accenture (NYSE: ACN) has acquired Openmind, a boutique commerce agency in Italy with key capabilities in cloud-based platforms, to meet client demand in the rapidly growing commerce market and deliver transformative experiences.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20210729005210/en/

Accenture acquires Openmind in Italy to help clients reimagine commerce experiences (Graphic: Business Wire)

Notably the first acquisition for Accenture Interactive in the country, Openmind boasts a multidisciplinary consulting approach in the areas of commerce, content, strategy, experience design and technology, which will enhance Accenture Interactive’s capabilities to deliver greater operational excellence to clients across all industry sectors, particularly luxury and fashion. Terms of the transaction were not disclosed.

Spurred by the pandemic, the Italian fashion industry has rapidly accelerated towards ecommerce and online sales and expects to see double-digit growth in the next three years¹, resulting in the need for requisite skills to deliver data-driven, human-centric digital experiences across connected platforms and leading cloud technologies. The acquisition of Openmind will continue to scale Accenture Interactive’s commerce capabilities in the region, offering clients strategy and implementation of seamless commerce experiences on platforms including, Adobe, Salesforce and SAP along with helping meet clients’ ambitions for international expansion through Accenture’s global delivery network.

“We are delighted to welcome the Openmind team who will join us in our mission to drive greater impact and commerce efficiencies for our clients in Italy and around the world,” said Massimo Morielli, president of Europe for Accenture Interactive. “The pandemic accelerated the shift to buying things online in a major way and has opened up a world of opportunities to brands to transform the commerce experience. They cannot ignore the direction their customers are heading in and the deep experience of the Openmind team will ensure our clients have the tools needed to create these seamless experiences.”

Founded in 2004, Openmind, based in Monza, Italy, works with some of the world’s leading luxury and fashion brands and was recently named in the Financial Times’ FT 1000: Europe’s Fastest Growing Companies list. Approximately 110 employees from Openmind will join Accenture Interactive in Italy, bringing deep technical skills and a proven reputation with clients.

“The future cannot be predicted, but we can help build it,” said Ivano Cauli, CEO of Openmind, “We are excited to join the Accenture Interactive team to help deliver superior commerce solutions by using the power of leading platforms to transform the commerce experience. We are thrilled to be able to further our mission through Accenture Interactive’s proven track record as a leader in the industry, which we are confident will drive success and growth for clients.”

Accenture Interactive’s commerce offering is centered on supporting clients design and implement transformative experiences for the consumer, offering expertise in emerging platforms and modern commerce architectures such as headless and composable commerce.

About Accenture

Accenture is a global professional services company with leading capabilities in digital, cloud and security. Combining unmatched experience and specialized skills across more than 40 industries, we offer Strategy and Consulting, Interactive, Technology and Operations services — all powered by the world’s largest network of Advanced Technology and Intelligent Operations centers. Our 569,000 people deliver on the promise of technology and human ingenuity every day, serving clients in more than 120 countries. We embrace the power of change to create value and shared success for our clients, people, shareholders, partners and communities.

Visit us at www.accenture.com

Accenture Interactive is reimagining business through experience. We drive sustainable growth by creating meaningful experiences that live at the intersection of purpose and innovation. By connecting deep human and business insights with the possibilities of technology, we design, build, communicate and run experiences that make lives easier, more productive and rewarding. Accenture Interactive is ranked the world’s largest digital agency by Ad Age and has been named a Most Innovative Company by Fast Company. To learn more, follow us @AccentureACTIVE and visit www.accentureinteractive.com

Forward-Looking Statements

Except for the historical information and discussions contained herein, statements in this news release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “may,” “will,” “should,” “likely,” “anticipates,” “expects,” “intends,” “plans,” “projects,” “believes,” “estimates,” “positioned,” “outlook” and similar expressions are used to identify these forward-looking statements. These statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied. Many of the following risks, uncertainties and other factors identified below are, and will be, amplified by the COVID-19 pandemic. These risks include, without limitation, risks that: the transaction might not achieve the anticipated benefits for Accenture; Accenture’s results of operations have been significantly adversely affected and could in the future be materially adversely impacted by the COVID-19 pandemic; Accenture’s results of operations have been, and may in the future be, adversely affected by volatile, negative or uncertain economic and political conditions and the effects of these conditions on the company’s clients’ businesses and levels of business activity; Accenture’s business depends on generating and maintaining ongoing, profitable client demand for the company’s services and solutions including through the adaptation and expansion of its services and solutions in response to ongoing changes in technology and offerings, and a significant reduction in such demand or an inability to respond to the evolving technological environment could materially affect the company’s results of operations; if Accenture is unable to keep its supply of skills and resources in balance with client demand around the world and attract and retain professionals with strong leadership skills, the company’s business, the utilization rate of the company’s professionals and the company’s results of operations may be materially adversely affected; Accenture could face legal, reputational and financial risks if the company fails to protect client and/or company data from security incidents or cyberattacks; the markets in which Accenture operates are highly competitive, and Accenture might not be able to compete effectively; Accenture’s profitability could materially suffer if the company is unable to obtain favorable pricing for its services and solutions, if the company is unable to remain competitive, if its cost-management strategies are unsuccessful or if it experiences delivery inefficiencies or fail to satisfy certain agreed-upon targets or specific service levels; changes in Accenture’s level of taxes, as well as audits, investigations and tax proceedings, or changes in tax laws or in their interpretation or enforcement, could have a material adverse effect on the company’s effective tax rate, results of operations, cash flows and financial condition; Accenture’s ability to attract and retain business and employees may depend on its reputation in the marketplace; as a result of Accenture’s geographically diverse operations and its growth strategy to continue to expand in its key markets around the world, the company is more susceptible to certain risks; Accenture’s business could be materially adversely affected if the company incurs legal liability; Accenture’s work with government clients exposes the company to additional risks inherent in the government contracting environment; Accenture’s results of operations could be materially adversely affected by fluctuations in foreign currency exchange rates; if Accenture is unable to manage the organizational challenges associated with its size, the company might be unable to achieve its business objectives; if Accenture does not successfully manage and develop its relationships with key alliance partners or fails to anticipate and establish new alliances in new technologies, the company’s results of operations could be adversely affected; Accenture might not be successful at acquiring, investing in or integrating businesses, entering into joint ventures or divesting businesses; if Accenture is unable to protect or enforce its intellectual property rights or if Accenture’s services or solutions infringe upon the intellectual property rights of others or the company loses its ability to utilize the intellectual property of others, its business could be adversely affected; Accenture’s results of operations and share price could be adversely affected if it is unable to maintain effective internal controls; changes to accounting standards or in the estimates and assumptions Accenture makes in connection with the preparation of its consolidated financial statements could adversely affect its financial results; Accenture might be unable to access additional capital on favorable terms or at all and if the company raises equity capital, it may dilute its shareholders’ ownership interest in the company; Accenture may be subject to criticism and negative publicity related to its incorporation in Ireland; as well as the risks, uncertainties and other factors discussed under the “Risk Factors” heading in Accenture plc’s most recent Annual Report on Form 10-K and other documents filed with or furnished to the Securities and Exchange Commission. Statements in this news release speak only as of the date they were made, and Accenture undertakes no duty to update any forward-looking statements made in this news release or to conform such statements to actual results or changes in Accenture’s expectations.

[1] Sources: Osservatorio PoliMi 2020

Copyright © 2021 Accenture. All rights reserved. Accenture and its logo are trademarks of Accenture.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210729005210/en/

Rosie Milton

Accenture Interactive

+44 77 6928 6484

[email protected]

Samuela Marti

Accenture Italy

+39 0277758577

[email protected]

KEYWORDS: Italy Europe

INDUSTRY KEYWORDS: Technology Consulting Security Other Technology Professional Services Software Networks Data Management Other Professional Services

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Accenture acquires Openmind in Italy to help clients reimagine commerce experiences (Graphic: Business Wire)

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